Aug 082013
 

MANILA, Philippines – Philippine retailers should source materials for their products locally in order to contribute to economic growth through improved income of more people and stronger domestic consumption, a cabinet official said.

Speaking at the 22nd National Retail Conference, Finance secretary Cesar Purisima said retailers have a role to play for the country to sustain its strong economic growth.

He said that while the country has seen economic gains during the past three years, it now faces the challenge of sustaining the strong investor confidence and positive economic performance in the coming years.

“Instead of doing the easy way by ordering from China or importing from abroad, (you retailers should) start looking at how you can engage Filipino suppliers,” he said.

For instance, Purisima said those in the food business should source their vegetables locally by engaging with Filipino farmers and telling them to produce according to their requirements.

By sourcing locally, retailers could help local suppliers by providing them a market, as well as helping them earn more.

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Helping them earn more in turn would enable them to consume more goods, which would also be beneficial to retailers.

Purisima said that to encourage retailers to engage with local suppliers for their products, the Department of Finance (DoF) is open to providing perks or assistance such as duty-free importation of capital equipment as well as building infrastructure, making credit available and providing training.

The DoF however, does not support providing income tax holidays as perks.

“We don’t support income tax as perks because the idea of perks is to make businesses viable. That means businesses will not make money without perks but if they are making money already, that means they are viable. If they’re viable, they have to pay taxes just like the rest of us,” Purisima said.

Apart from encouraging retailers to get materials for their products from the local market to contribute to sustaining the country’s economic growth, Purisima said they must also pay their taxes.

This, as tax compliance remains low.

“This is the most important duty of every citizen because without resources we can’t invest in infrastructure. Without resources we can’t have social services. Without resources, we can’t have stability and security,” Purisima said.

The government registered revenues of P131.09 billion in June, bringing the first semester figure to P839.46 billion, up 10.3 percent from P760.92 billion.

This, however, is short of P861.04-billion target for the period.

The National Retail Conference organized by the Philippine Retailers Association (PRA), was held to provide the latest trends in the retail landscape.

The PRA groups over 300 companies such as retailers, mall and shopping center operators, traders or suppliers, manufacturers, distributors, and wholesalers, among others.

Apr 242013
 
Cebu exporters warned vs. pirated software

MANILA, Philippines – Philippine suppliers and exporters to the United States may be charged with “unfair competition” once discovered using pirated software, an intellectual property firm said Wednesday. Open Computing Alliance (OCA), an international trade agency, urged the local export industry, particularly in Cebu, to adhere to software licensing rules as they can be subjected to US laws punishing patrons of piracy. OCA Asia Pacific secretary-general Michael Mudd said in a statement that Washington state, for one, passed a bill prohibiting even foreign businesses in touch with the US “while using stolen or misappropriated information technology.” “Although this is not a US Federal law, the principle is enshrined in the US Federal Trade Commission in preventing unfair competitive advantage and providing a level playing field,” Mudd added. He said that exporters charged with violations may affect the whole of the country’s trading ties with the US, which has been a significant market for Philippine products. Citing 2011 data alone, Mudd said that Philippine exports to the North American country reached $9.1 billion. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 The intellectual property expert gave garments companies Ningbo Beyond Home Textile from China and Pratibha Syntex from India which are facing “unfair competition” lawsuits that may penalize them for over $100,000 for software copyright violations. “Software is a small fraction of total operating expenses but can be a high cost if it has not been properly paid for. IT piracy is an issue that must be dealt with immediately Read More …